Ethical Fashion Forum: alternative trade page

International Trade & Globalisation

This is a draft page to send to Ethical Fashion Forum, in case they will change their current one. Comment welcome. They sounded a bit softer in the line they took in about 2014, as though their party line might change, so I wrote this.

You can use Bing or Google to do a site search Ethical Fashion Forum's pages for the use of any words like "NHS" "welfare state", "national insurance", "social insurance" and find next to nothing. Some search engines have boxes to construct searches like this so you can check for yourself. The searches are cleaner when restricted to the UK.
https://www.mojeek.com/advanced.html
https://www.google.co.uk/advanced_search
http://advangle.com/

Silence says a lot about Ethical Fashion Forum's views, and those of those organisations that do business with them  - Department for International Development helped them get started for example, alongside some similar work done by London College of Fashion.

There are handy links to those very search results on this page - http://veganline.com/ethical-fashion-forum.htm
While they and their backers refuse to mention anything about a welfare state on their web site, there's not much point in talking to them and offering suggestions, but this was written anyway. It doesn't try to parody their style by writing "things are very difficult - Nana, 17, Bangladesh textile worker", or "The East India Company are doing wonderfully- photographed work, buying from happy with artisans in Bengal - or plan to do so in future because they haven't started yet (case study number 4 for your essay)". Oh alright then, I've added it to the bottom of this page in a box if you're interested.

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International Trade is influenced by the price of goods in different countries.

That depends on ingenious mechanisation, and the cost of labour. An area or a country with rising levels of skill and investment in machines, but a low cost of living will tend to export goods.

Tariffs

Trade is controlled by tariffs that divide the world into trade blocs described here. If they co-operate, it is sometimes through a trade association called the World Trade Organisation.
http://en.wikipedia.org/wiki/Trade_bloc

Exchange Rates

Trade is influenced by exchange rates, when they are manipulated upwards to control inflation, or downwards to increase exports. To make a currency more valuable, governments pay extra to creditors for government debt. Investments flow-in. The value of the currency rises. To make a currency less valuable, governments and the private sector move money out of a country into overseas investments or bank accounts.
Exchange rates are a big part of what's done my monetary policy:
http://en.wikipedia.org/wiki/Monetary_policy

low wage economies are caused by the lack of a welfare state

Trade is influenced by the ingenuity and investment of workshops making goods, but it is also influenced by the cost of living and peoples' availability to work on low wages. Some countries have a better developed welfare state, paid from taxes or national insurance on workers. Others are run by elites which choose not to have a welfare state, making the output of those countries cheaper. One complication is that new industrial towns which spring-up tend to have a higher fertility rate - more people over time - in countries with no welfare state. The lack of girl's secondary schools, the lack of health advice, and the lack of pensions for people who have no children to support them are all factors which cause people to have large families. When families grow fast, there is a lot of unemployment and wages remain very low.

The poverty of overpopulated countries spreads to other countries, as cheap goods under-cut the price of goods woven and stitched in Europe. Governments in poor countries are also scared to introduce a welfare state for fear of loosing export markets to other poor countries that don't have a welfare state. A buyer of something like clothing can easily move orders from Sri Lanka to Ethiopia for example if one country is cheaper than another.

Tariffs again: the multi fibre agreement

Textile products are some of the most labour intensive to make and easily shipped.
The multi fibre agreement was written specifically to control rapid changes in the textile trade.  It ran from 1974 until 2005. There may have been a hope that in these 31 years, the cost of production in developing countries would rise because of national insurance and welfare state costs, the costs of inspecting safe factories that do not fall down, and the cost of a developed government.
http://en.wikipedia.org/wiki/Multi_Fibre_Agreement

No consensus: globalization doesn't work very well to promote development

Agreement on trade is hard to find: different groups from different backgrounds have a different idea of what is "ethical" or in their interests.  It is rare to find a group of people in one room who take acknowledge all the issues at the same time.

• One rule of thumb is that free trade and floating currencies achieve a good deal for everyone, with other points like different levels of welfare state or remaining currency manipulation best ignored. The hope is that these are either unimportant or will come-right in the end: a developing country might introduce better welfare systems after it develops. South Korea, for example, has even become an aid donor to poorer countries after being a very poor country within living memory. Those who talk about world trade tend to be on the right of politics and less interested in welfare systems, so they tend to take this view regardless or complication. It's common to quote Adam Smith's phrase "comparative advantage", which was a very general idea from a different age about a different subject, but the phrase is still used. The same people tend to be very interested in reducing inflation by controlling their local labour market, and favour raising the value of their local currencies so that imports are cheaper.
• One rule of thumb is that a few detailed tariffs for specific reasons will achieve a good deal for everyone, despite the reduction in world trade. The European Union imposes a 15% tariff on goods from outside an ever-widening free trade zone. Conditions for entry include some level of democracy and human rights. Some countries in need of development like Bangladesh are also included in the trade zone for no particular reason and many more have followed recently. Detailed rules are written. Ethiopia has 0% tariff access to the EU market for leather goods for example, because someone at some point decided that leather goods would help Ethiopia. Protection of the North American  free trade zone can be complex too, with different tariff rates for different classes of goods.
• Conditional tariffs were once proposed in the early 70s by the World Trade Organisation. At that time the jargon word was a "social clause" and the condition of a lower tariff was signing-up to standards of the International Labour Organisation (not introducing a welfare state as suggested here). People who ran third world countries, and who do very well out of poverty, were very much against the scheme and it went no further. That's a pity because, in theory, a very general and widely understood scheme can give the government of one country confidence to intoduce a change that gets them a lower tariff, and not be under-cut in export markets by another country that doesn't.
  https://en.wikipedia.org/wiki/Social_clause

Ethical Fashion Forum

Ethical Fashion Forum is based in the UK which is still a major market for fashion products, and a small producer of the more automated or niche-market products. Like the rest of Europe, the UK also has high unemployment. Common ethical claims would be that something is made in a democratic welfare state that needs a fashion industry to remain that way.

Ethical Fashion Forum members are based all over the world. Common ethical claims made of products are that they boost employment for a particular group in an employment scheme, or that they produce a local design that earns more of the value of the product to people on lower incomes in that country, rather than a large trading conglomerate.

As a forum, we can provide no absolute answers but hope to allow groups of members with particular ethical claims to state them as clearly as possible and to refer to facts where possible.

The original rubbish page is still online unfortunately

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This blog is by a vegan shoe company called Veganline.com that sells vegan shoes boots & belts PlanB4fashion.blogspot.co.uk can be read on one long page about ethics fashion and trade

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Oh this is the style of taxpayer-backed promotion of fashion companies via teacher training notes. It doesn't mention that

• Monsoon's ethical claims are contradicted by the Ethical Trading Initiative that refused to sign,
• Monsoon has admitted paying below the minimum wage in India
• Monsoon has been exposed as paying below the minimum wage in the UK
• Monsoon's ex-UK suppliers state that "the ruthlessness has always been there" alongside news that it is paying their invoices late and with a 10% reduction on the agreed price
• Monsoon's backers at Ethical Fashion Forum used a charitable grant to hold a "summit" calling for companies like Monsoon not to have to pay tax.

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Ethical Fashion Definition:

A vague enough term that a lobbyist can then ask "what is ethical fashion?" and answer it any way they like, perhaps with a case study for fashion students to quote in essays

Ethical Fashion Source Summit included a talk by a Monsoon employee and a list of case studies for students to quote.

4. Case Study: Monsoon / SEWA
Monsoon, much like fellow British retailer EAST, have artisan collaboration embedded in their brand heritage. Founded by Peter Simon in 1973 after an epic road trip across Asia, the earliest Monsoon collections comprised clothes made in Indian villages using vegetable dyes, hand-loomed cotton and block printing (Monsoon, 2013).

Though now a global brand Monsoon continues to value artisan skills such as beading and embellishment. Monsoon is a founding member of the Ethical Trading Initiative and has its own code of conduct for all suppliers, paying unexpected visits to factories to ensure standards are met. Alongside this Monsoon is involved in a number of community projects in Asia, including a project reviving the silk cultivation industry in Afghanistan to provide livelihoods for widows and vulnerable women.

Though most production has now shifted to larger factories Monsoon still trade with some of their original and smaller suppliers. This creates jobs and develops local communities at a time when the number of artisans in India has declined 30% over the past decade (DASRA, 2013).

According to Olivia Lankester, Monsoon’s Head of Corporate Responsibility, “artisans in India increasingly hard to make a living from their craft, many living on the poverty line and struggling to meet their basic needs. This has lead to a generational loss of craft skills and contributed to mass migration to urban areas.” Monsoon aims to tackle this through their commitment to supporting craft communities in India.

Launching this October, Artisan Trade is a range of clothing, accessories and gifts made in collaboration with Indian artisan co-operatives. “Many artisan groups have incredible skill and beautiful product but very limited access to market. This is where we can help – while also providing technicasupport to help artisans upgrade and update their product offer.”

Artisan Trade is an expansion and rebranding of the Monsoon Boutique range, which provides sorely needed market access for Indian artisans. If successful the range will provide sustained employment for women which will move them away from the poverty line and enable future social mobility and economic growth.

Monsoon Boutique not only provides a sales channel for craftspeople, it also focuses on upcycling Monsoon’s fabric offcuts by using them to produce items such as quilts, aprons and childrenswear. All proits are donated to the Monsoon Accessorize trust which provides grants to artisan co-operatives such as SEWA (Self Employed Womens Association). SEWA is an embroidery co-operative in Delhi that over the past four years has received funding from Monsoon for a new embroidery centre, training programmes for women, a micro-credit programme and an education programme for children.

Rather than work through an intermediary Monsoon have always worked directly with Indian suppliers to design and produce their products. A team in Delhi are on hand to provide technical support, training and advice to producers, which Olivia feels makes a “huge difference” to the success of the operation. When necessary Monsoon have linked artisan co-operatives with larger suppliers to help with operations such as sourcing, packaging and testing requirements.

Although not yet launched, Monsoon’s Artisan Trade has good prospects as an expansion of Monsoon Boutique. Their 40 years of experience working with artisans means Monsoon are well placed to bring such products onto the market as the range already has a defined niche among Monsoon customers. The first Artisan Trade collection has taken 9 months from concept to delivery. Monsoon already have a well established network of suppliers which would help shorten the lead time on the range of artisan clothing for such a large market.

The success of Monsoon’s community work is extensive, helping 10,000 disadvantaged women and children every year (Monsoon, 2013). The Artisan Trade line will not only provide employment for these women but proits from sales will be reinvested into community projects to create livelihoods and provide healthcare, education and shelter.

Photography: Sam Faulkner
Yasmin Le Bon, visiting Monsoon Artisan Trade supplier quilting co-operative

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Planb4fashion is a blog by Veganline.com which is a vegan shoe shop

Nothing changes except the outfits (2) - why no social insurance in Bangladesh / Bengal?

Talking of imperious Bangladeshis, I asked a historian why National Insurance was not introduced in Bengal about 1911 when it started in the UK. My post below about Charles Hardinge (pictured) is wrong; he was the Viceroy.

Wikipedia tells me that Bengal had a former district officer as temporary governor 1911, Edward Duke, who became deputy in 1912 to an ex-governor of Australia, Thomas Gibson-Carmichael. Then as now, failed MPs sometimes happen to get well-paid government jobs and this one had tried being a UK MP for the party that brought-in National Insurance. So he knew what it was. Unusual for the people who worked for the Indian Civil Service who had been toughened-up with a ten-year stretch of boarding school before being "posted" to India. Most of them learned about the UK from surface-mail copies of The Times, arriving in bundles.

The historian usually does West-Indies, but said that if there was a Bengali assembly, discussion of national insurance would show-up in its records. He told me that the experience of empire diverged between white colonies and others from the 1860s to 1914. This surprised people in India, who had been lead to expect something different. Colonies like New Zealand could be the first part of the empire to have women voters. So why not Bengal? It's one of history's un-answered questions, and a reason for poverty in Bangladesh and clothes manufacturing today.

The difference between us is... (reply to Ethical Fashion Forum)

09.07.2013 18:06
Dear Tamsin Lejeune
the difference between us is on the "issues ... made in britain" page of your web site, at the bottom.

Made in Britain | Ethical Fashion Forumhttp://www.ethicalfashionforum.com/the-issues/made-in-britainIt is only by raising standards and wages outside of the UK that the UK garment production sector will again be in a position to compete on equal terms with production in what are currently low wage economies.

"trade in garments and textiles has created a springboard for industrial development all over the world- with Britain and America being amongst the first to benefit followed by the “Asian Tiger” economies of Hong Kong, Taiwan and Korea, and more recently, China and India. Producing garments or components of garments outside of the UK to sustainable standards can assist development in some of the poorest communities in the world, create sustainable livelihoods and reduce poverty for thousands of people."

I think that national insurance, secondary schools, hospitals, accesss to justice, and votes should happen before or during an industrial revolution and be forced to happen.

Votes, for example, happen in Taiwan and Hong Kong but not in China. People in China have been waiting rather a long time, I think, and are unlikely to get universal pensions or healthcare until they have votes. It's an odd country because the single child policy has forced wealth to spread a bit - there is not the population explosion that's happened in Bangladesh.

Thinking of other ways to reduce a population explosion, I think that pensions, healthcare and health education, contraception, and girls' secondary schools all help; if girls are more assertive and there is less pressure to have children to look after you in old age, then the population might not explode so rapidly. People in Bangladesh have been waiting rather a long time national insurance, given that the UK had a National Insurance Act in 102 years ago in 1911. The prime minister of the UK could simply have telegrammed the Viceroy of Inda, Lord Hardinge, (pictured if the upload works) and floated then idea but apparently it didn't work like that. I don't think that Bangladesh or Pakistan are going to change any time soon while some people in the country do very well out of their neighbours being poor. There is even enough money in government for an export subsidy, but not enough for a heath service. There is a risk that Bangladesh could loose market share if other countries do not introduce a national insurance system too. Cheap labour, and the flow of aid, both happen when there are a lot of poor people.

"It is only by raising standards and wages outside of the UK that the UK garment production sector will again be in a position to compete on equal terms with production in what are currently low wage economies."

If you are convinced that there should be national insurance or high tariffs built-in to the prices of clothes from Bangladesh, then we can agree on this last paragraph. And such a large change of position would prompt you to re-write the first part of the page as well,

1. stating that goods made in welfare states are more expensive for good reason, offering better conditions for their workers than a fairtrade scheme. You might become interested in


2. how people who live in welfare states can seek-out goods made in them, which will probably be by mail-order rather than high street chainstores. An example is the one that your "made in Britain" swing tag logo came from, which has since had to lay-off its staff. You will want to


3. criticsise London Fashion week for the way it puts UK factory workers out of work by offering free PR to companies like Terra Plana which made its shoes in China and made rediculous claims. You would


4. explain how companies in South Europe now, or the UK in 1979-2009, were devistated by whimsical changes of exchange rate dictated by central banks rather than the goods market. That's why their designs are mainstream and their sales methods geared to particular markets.


5. mention how the UK needs a rebalanced economy to pay the taxes that pay for a welfare state, now that payments from financial services have dropped by billions.

I'm sure you would want to do some of those things if we agreed with each other.

Meanwhile, I'll type another draft of your "issues/made-in-britain" page in case you can use it for the moment as you're busy with a trade show, and Bangladesh is the hot topic at the moment rather than Middleton or Rushden or Rossendale or Nottingham or Hinckley or Northampton.
regards
John Robertson

John Robetson, blogging as planB4fashion
mail e-mail: brittaniabuckle@yahoo.co.uk
- Homepage: https://www.facebook.com/planB4fashion

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This was written in answer to a post to indymedia and to planB4fashion on 08.07.13
No reply has been recieved 05.09.13. The original post is quoted below
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Response from the Ethical Fashion Forum

08.07.2013 19:13

Dear Indymedia,I am a fan of what you do and what you stand for. As Managing Director of the Ethical Fashion Forum, I am writing to give our side of the story on the Ethical fashion Forum and the SOURCE Summit.

We are a small not for profit organisation, absolutely committed and dedicated to better practices in the fashion industry. You quote £225 as the price of attending the SOURCE Summit- in fact our prices started at £65, and we are also live streaming the event - free for people to attend from anywhere online. However, we are determined to be heard with this event- and that means running it in a higher profile way. You can't do that without any money- even if you run an event at cost, which is what we are doing.

As a forum for collaboration in the industry, we have always been inclusive- by bringing together individuals and businesses from every part of the industry , we are able to get constructive debate going, and this has catalysed some very effective partnerships and initiatives. There is no question that the majority of the industry is not doing enough to address the appalling conditions for workers that remain endemic in many parts of the world. There are organisations whose remit it is to campaign against this and expose the companies that are not doing enough about it- this is important, and it needs to continue.

Our remit is to work with companies, offering them the tools, access to information, inspiring and motivating their staff, building connections and fostering collaboration across the sector, in order to meaningfully improve standards and conditions.

We recently launched a Call to Action on Bangladesh, and it has had a very wide response from the professional fashion sector:  http://source.ethicalfashionforum.com/article/bangladesh-240413-never-again-join-the-industry-in-a-constructive-response

We would be very interested to work with you, PlanB4fashion, and take on board your ideas.

We would also absolutely welcome speakers from the European Parliament to this and other events. Panel speakers do not pay to attend- they do normally ask for expenses if travelling though- so, as a social enterprise, we do need a business model for our events! Which means charging a fee to attend. Our fees are a fraction of the event fees of other mainstream industry events. If anyone has bright ideas on how we can run an event like this without charging fees to delegates, they are most welcome!

Finally, we really welcome the voices of the readers of Indymedia at SOURCE Summit- attend online, FREE of charge, by registering here -  http://source.ethicalfashionforum.com/article/live-stream-registration-source-summit-2013

Hoping to connect with you there, and welcoming you to join the debate,

Tamsin Lejeune
Managing Director
Ethical Fashion Forum and SOURCE

Tamsin Lejeune
e-mail:
Homepage: www.ethicalfashionforum.com

Nothing changes except the outfits - no national insurance in Bangladesh

Charles Hardinge, diplomat to Russia and then Viceroy of India did not introduce national insurance in 1911. Maybe people like him were not much aware of it, or there was no pressure on them to do anything. Maybe the UK government rather liked the benefits of cheap labour. Nothing changes except the outfits!

plan B 4 fashion manifesto

4-point manifesto from the blog at https://facebook.com/planB4fashion .
Points 1 & 2 are about fashion production in the UK.
Points 3 & 4 are about reducing poverty in the far east - for example Bangladesh.

1.
UK government can help UK factories compete, by releasing tax data to say what factories exist.

Data could be made-up into trade directory by anyone who wanted to do the work as happens already with simlar data. Some companies would find ways of covering their costs and cross-selling other services. If not, perhaps a small grant of a volunteer effort could get good directories written.

Better trade directories are a very cheap way of re-balancing the UK economy so that it begins to pay enough taxes and employ enough people. Factories help money circulate around the UK, bringing taxes back into government, and creating jobs in run-down areas. Factories also have to be very lean to pay the costs of paying for a democratic welfare state with a UK living-standard and rents. They don't all have staff for sales or PR or tendering for contracts or submitting entries to competitions. Some don't even have office or reception staff. They need terse orders from well-informed customers who know exactly what the factory makes, the technique used, and maybe the minimum orders for free set-up or free UK delivery.

2.
UK government can change the fashion week that we pay for in taxes (through Greater London Authority and Department for Business' UK Trade and Investment).  It can insist that exhibitors are nominated by UK or European factories & display the names of the factories. This would get better value for UK taxpayers' money: UK taxpayers pay to promote employment amongst other UK taxpayers. UK taxpayers promote a clothing brand and a factory for the same budget that just paid to promote a clothes brand in the past; it's two results for the price of one.

Factory-vetted designers are probably reasonable to work with, from a factory's point of view.
At the moment London Fashion Week pays for extra coaching for designers who aren't businesslike - even some in the past who didn't have a way of making the clothes they put on show! There is an export guarantee system that insures their bad debts from overseas buyers,  who sometimes take advantage by not paying. So, in the worst case, a fashion week and UK Trade and Investment subsidy can promote a designer who is hard to work with, then pay the bad debts when the designer isn't paid, and put rival producers out of work because they're not in the PR business and get overlooked. An example is Equity Shoes of Leicester who were overlooked as ethical footwear producers while Terra Plana, who bought shoes from China, got the PR. Both are now closed.


For a long time there was only anecdotal evidence that London Fashion Week helped taxpayers. Now they have a 50 page "Value of Fashion" report in very small print which seems to show huge returns. We know from the Olympics' effect on London tourism that these reports are partly a sales pitch; they are not impartial. Read closely, the report admits the opposite of what the headline summaries say. Estimates of how money circulates are based on decades-old data about how many shoe factories existed in the UK, including many like Equity Shoes that have now closed. Most of the money circulates amongst people who could get other jobs in PR and fashion journalism. And no estimate is made of the cost of crowding-out UK apparel suppliers from the market.

3.
Bangladeshi, Pakistani, Indian & Chinese governments can reduce poverty.
The methods that worked in the UK 100 years ago were universal schooling and national insurance. Schooling for girls helped them become more assertive and reduced the rate of child birth. Pensions helped parents plan for old age without having to have as many children as they possibly could.

The first modern national insurance scheme was introduced in Germany, just before its industrial revolution.  It is not too early for Bangladesh to start one now.

The difficulty is how someone in the UK can effect government in Bangladesh, beyond a few factory checks or a fair-trade scheme. This is the next point.


4.
European and US government can change the tariffs that tax trade from countries without democratic welfare states like Bangladesh or China.
This helps people in Bangladesh as well as their cousins in Bolton. There is a consensus.
A formula for tariffs be worked-out over time.

• More democracy earns a lower tariff - there is already a democracy index that could help this one get started.


• More of a welfare state earns a lower tariff.


• More human rights earn a lower tariff. And the reverse could also be true, so a country with more expensive exports because of the cost of a welfare state can still compete on price with China; the worst country no longer sets the market price for garment production.

Western governments are already trying to help eastern ones become more stable and better governed, if only to prevent the tide of misery reaching Europe in the form of wars and refugees. Search "Bangladesh" on gov.uk and find this...

"we are working with Transparency International Bangladesh and other civil society organisations to generate more debate between the government and citizens about progress in improving the providing services like health, education and legal services, and to beat corruption."

Unfortunately, western governments are also paying Bangladesh to keep its poor, with grants, development work and tariff-deals that depend on there being a lot of very poor people in Bangladesh. The rich in Bangladesh do very well out of this system. Their government even has enough free cash to pay for an export subsidy in a country that gets aid from the UK. Factory owners now get some free training for their staff paid by the UK taxpayer. With luck, the firm consistent pressure of conditional tariffs would change their minds and the way they run government. If not, the tariff system would raise some money towards the 0.7% that UK taxpayers pay in aid, to pay for Pakistani healthcare when the Pakistan government only pays 0.8% on health.

Dolce and Gabbana convicted of tax evasion | World news | theguardian.com

Milan Fashion Week late news: 1st, people are paying too big a markup to Dolce and gabbana by the look of it, 2nd a judge found €1bn missing from the stated income on their tax return, complicated by payment through a Luxemburg company. 3rd, if their clothes are made in China which has no welfare state and so lower taxes, isn't that another form of tax avoidance?

Dolce and Gabbana convicted of tax evasion | World news | theguardian.comhttp://www.guardian.co.uk/world/2013/jun/19/dolce-gabbana-convicted-tax-evasion-italy-fashionItalian fashion designers Domenico Dolce and Stefano Gabbana found guilty in Milan court of failing to declare €1bn in income

Bangladesh - the cost of fashion | link to AlJazeera and comment

Interview with Muhammad Yunus

http://www.aljazeera.com/programmes/countingthecost/2013/05/2013524164645166872.html - long video interview with Muhammad Yunus. He mainly says diplomatic, upbeat, vague things in order to get decision-makers round a table with him, but comes-up with a few specifics about introducing a welfare state when the governments of Bangladesh and Europe aren't interested.

1. Firstly, some high-profile high-volume buyers could ask for a minimum wage to "set the ball rolling". With luck this could begin to effect colleagues in the same company, subcontractors to the contracting company and so-on if there were a consensus that it was a good thing.
2. Secondly I forget - it was a long interview.
3. Thirdly he came-up with a rarer point. If trade associations and legislators make information more public about factory ownership, names to blame, safety certificates checked, wages paid, then the existing laws become a lot stronger. There could be something like a wages council to investigate payment below the minimum wage or factories with cracks in the walls. What I didn't hear was why textile workers in Europe and Bangladesh deserve less of a predictable career and a welfare state than other less globalised workers, but as soon as international trade is discussed, welfare rights drop off the agenda.

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Planb4fashion may be easier to read on a single page
a blog by Veganline.com which is a vegan shoe shop